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From Lode Van den Hende, a leading European lawyer with the firm Herbert Smith, provides the following comment (not to be relied upon as legal advice, only for information purposes).
“ ……the most interesting parts are the following (which all demonstrate that the US does allow Internet gambling and that it can be regulated):
• The WTO Panel finds that "there are at least 18 State laws that expressly authorize wagering by wire within the United States, including on a wholly intrastate basis" (para. 6.121)
• The WTO Panel mentions that the US originally argued that Internet gambling could not be regulated but that it has changed its position because the UIGEA explicitly acknowledges that such regulation is possible (footnote 195).
• The WTO Panel mentions the prosecution of Betonsports but adds that it finds it striking" that the DOJ has never prosecuted any of the US based horse race betting operators (para. 6.126 and 6.127).
• The US had an opportunity to clarify that Internet gambling on horse race betting is prohibited but that the UIGEA does precisely the opposite by deliberately maintaining the ambiguity (para. 6.135).
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